Nations which experience relatively high rates of inflation
A. cause inflation in other nations when they export their relatively high priced goods to these nations.
B. will experience a reduction in the value of their currencies in the foreign exchange markets.
C. will not be able to export products if their currencies depreciate in value.
D. will not be able to import products unless their currencies depreciate in value.
B. will experience a reduction in the value of their currencies in the foreign exchange markets.
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Which of the following are TRUE regarding Milton Friedman's k-percent money targeting rule?
i. Currently this policy is used by many policy makers. ii. This rule sets the growth rate of the quantity of money independently of the economy's behavior. iii. For this policy to work well, the velocity of circulation must be stable. A) ii and iii B) i and ii C) i only D) ii only E) iii only
As compared to the market clearing price, the total amount of consumer surplus and producer surplus is
A) greater for a government-imposed price floor that is higher than that market clearing price. B) greater for a government-imposed price ceiling that is lower than that market clearing price. C) the same as a government-imposed price floor that is higher than that market clearing price. D) smaller for a government-imposed price ceiling that is lower than that market clearing price.